Lead Plaintiff Deadline: 02/19/13
Date filed: 12/21/12
Class period: July 21, 2008 through July 29, 2008
Court: Southern District of New York
Abraham, Fruchter & Twersky, LLP announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased ADRs and call options or sold put options of Elan Corporation (“Elan” or the “Company”) (NYSE: ELN) from July 21, 2008 through July 29, 2008, inclusive (the “Class Period”), alleging violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against the Company and certain of its officers (the “Complaint”).
The Complaint alleges that S.A.C. Capital Advisors, L.P. (“SAC”), CR Intrinsic Investors, LLC, a subsidiary of SAC, and related parties, including chief executive Steven Cohen, illegally sold over 15 million Elan ADRs and purchased over $1 million worth of Elan put options on the basis of insider information. SAC and its affiliates netted over $220 million in illegal profits and avoided losses by this illegal insider trading scheme. Specifically, the defendants traded ahead of the announcement of clinical trial results for Bapineuzumab (“BAPI”), an Alzheimer’s drug being jointly developed by Elan.
The complaint alleges that a portfolio manager at CR Intrinsic, Mathew Martoma, obtained inside information from Dr. Sidney Gilman, the physician chairing Bapi’s Phase II clinical trial safety monitoring committee. The complaint asserts that Martoma gave this information to defendant Cohen, who then liquidated all of SAC’s and CR Intrinsic’s holdings in Elan ADRs, worth over $365 million, and also took substantial short positions – selling over $500 million in Elan securities in just over one week.
When Bapi’s Phase II clinical trial were publicly disclosed after market close on July 29, 2008, Elan’s ADRs price dropped substantially – 41.8%. The complaint alleges that Defendants’ illegal scheme earned them illicit profits and avoided losses of over $220 million.
Defendant Martoma has been indicted in connection with his role in this scheme. Another defendant has settled civil charges brought by the Securities and Exchange Commission and has entered into an agreement with the U.S. Attorney’s Office for his role.
If you purchased Elan ADRs and call options or sold put options from July 21, 2008 through July 29, 2008, inclusive, and you would like to discuss these claims or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, please contact an AF&T attorney. If you would like information on how to participate in this action, please fill out the form below.